Reporting requirements by types of enterprise

* sole proprietorship

* partnership

* company incorporated under Companies Act :

- private company (Sdn Bhd)

- listed public company (Bhd)
- unlisted public company
Applicability:

* Income Tax Act - apply to all

* Approved Accounting Standards - apply to all

* Companies Act - applies to companies

incorporated under the act.

* SC’s guidelines - apply to all public companies

* KLSE listing requirements - apply to companies

listed on the KLSE
* Central Bank’s guidelines - apply to banks and
financial institutions

Non-incorporated enterprise

* approved accounting standards

* Income Tax Act

Private company

* Approved accounting standards

* Companies Act

* Income Tax Act

Unlisted public company

* SC’s corporate disclosure policy concerning high

standards of disclosure and dissemination of
information

* for banks and financial institution - Central Bank

guidelines
Listed public companies

* Approved accounting standards

* Companies Act

* SC’s guidelines

* KLSE listing requirements

* Income Tax Act

* Central Bank’s Guidelines

Exempt enterprise

MASB DSOP3; definition:

* does not have public accountability

- few stakeholders
- no accountability relationship with the
public
- parent or ultimate controlling
enterprise does not have the coercive
power to tax, rate or levy to obtain
public funds
* at the balance sheet date, all of its owners
are members of the enterprise’s governing
body
- no separation between the owners and
governing body
- owner is not a natural person
- where the enterprise is a trust, all
beneficiaries must be a trustee

* the enterprise is not large, is considered

large if:
- annual gross revenue is RM 10 million
- gross assets is RM 5 million
- average 50 employees
Basis for exemption:

* block or full

* application of a designated standard

* standard by standard basis

Generally accepted accounting principles (GAAP)

- Are guide to the accounting profession in the

choice of accounting techniques and the guide to
the preparation of financial statements in a way
considered to be good accounting practice.

-To qualify as generally accepted:

* the method will be in actual use in a

significant number of cases where the
circumstances are suitable
* the method would have support in the
pronouncements of the professional
accounting societies, or other authoritative
bodies.

* the method would have support in the

writing of a number of respected accounting
teachers and thinkers.